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Tag: Digital

  • Digital native Gen Z prefers to shop in-store

    Digital native Gen Z prefers to shop in-store

    Despite being the first “digitally native” generation, Generation Z – people born from the late 1990s through 2010 – still prefer to shop in bricks-and-mortar stores, according to a new study released IBM and the National Retail Federation.

    Though this generation grew up not knowing the world before cellular phones, smartphones, and other digital devices, the study found that 67% of Generation Z shop in a bricks-and-mortar store most of the time, with another 31% shopping in-store sometimes, indicating that 98% of Gen Z shop in the store.

    “Just as Millennials (born between 1980 and 2000) overtook Generation X (born from the mid-60s to early ‘80s), there’s another big buying group retailers need to plan for, and it’s even larger: Generation Z,” NRF President and CEO Matthew Shay said.

    “They appreciate the hands-on experience of shopping in a store. Technology is constantly evolving but some shopping habits remaining the same, retailers need to be agile enough to serve both needs.”

    The study, conducted by the IBM Institute for Business Value is based on findings from more than 15,000 consumers aged 13-21 from 16 countries. It estimates the global Gen Z population to reach 2.6 billion by 2020.

    It said retailers should consider this post-Millennial generation important because it has access to $44 billion in buying power, with 75% saying they spend more than half of the money that is available to them each month.

    This generation is also demanding: 52% of Gen Z consumers will transfer loyalty from one brand to another if the brand’s quality is not up to par. They care the most about retailers getting the basics right, with 66% saying product quality and availability are the most important factors when choosing one brand over another; 65% focus on value.

    “Retailers need to create more interactive engagement around their brands to serve the “always on,” mobile-focused, high-spending demographic,” the study noted.

    The study also found 74% of respondents spend their free time online, with 25% online five hours or more each day. Around 73% of Gen Z use their phones primarily to text and chat socially with family and friends, but members are willing to extend their conversations to brand relationships.

    For example, 36% would create digital content for a brand, 42% would participate in an online game for a campaign and 43% would participate in a product review.

    They also have no patience for hard-to-use technology and demand a seamless mobile/digital experience. Sixty-two percent will not use apps or websites that are difficult to navigate and 60% will not use apps or websites that are slow to load.

  • Online marketing essential for enterprises in digital era

    Online marketing essential for enterprises in digital era

    Despite a large number of Internet users, investment for online advertisement in Việt Nam remains modest, a conference heard on Thursday.

    The Institute for Brand and Competitiveness strategy co-ordinated with the Việt Nam Internet Association and Việt Nam Digital Communication Association to organise a conference on building enterprise branding in the digital era in Hà Nội.

    Over the past decade, the Internet boom has had a significant impact on marketing activities, as well as the building and positioning of brands in the market.

    Internet has also created stronger brand awareness than ever before and increased the number of people who know brands. According to the Institute for Brand and Competitiveness strategy, Việt Nam ranks 16th among the top 20 countries with the highest number of Internet users, with nearly 50 million people, of which, 60 per cent are young.

    The Internet has become a popular source of advertising to users who want to search for product information. Seventy-three per cent of Vietnamese consumers seek out information on the Internet before making purchase decisions.

    Most consumers in Việt Nam choose products and services based on brand identities.

    Therefore, experts advised businesses to make changes to their business operations, adjusting brand identity to avoid falling behind compared to rivals.

    To build brands in the digital era, businesses need to increase interaction in different environments, including the online environment, said Nguyễn Quốc Thịnh, an advisor for the National Trademark Programme.

    “Businesses should not skip electronic branding, a strong interactive environment with low associated costs,” said Thịnh.

    Enterprises need to rethink the way they build their brands, not just their logos or advertising in the media, he said.

    Currently, the application of the Internet in general, and digital technology in particular, to create and develop brands is still limited.

    Data from Cimigo, a market research firm, showed that investment for online advertising in Việt Nam was only US$15 million in the past year.

    Meanwhile, according to statistics from TNS Media Vietnam, the cost of online advertising accounts for less than 5 per cent of the total advertising costs, while 95 per cent of advertising spending is still through television, newspapers, magazines, even though these forms are more expensive.

    Vũ Xuân Trường from the Institute for Brand and Competitiveness strategy said that many businesses were paying attention to profits and business strategy, while their strategies for branding remained “vague”.

    Therefore, businesses need a better strategy in branding in the digital era. In particular, businesses should focus on social networks due to their widespread use.

    Experts said that businesses need to take advantage of opportunities afforded by the Internet to build their brands. Enterprises also need to increase connections with consumers, while ensuring the quality of goods and services.

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  • As Vietnamese banks digitise, customer service key

    As Vietnamese banks digitise, customer service key

    Customers must be at the centre of banks’ attention as they make a move towards digital transformation in an effort to adapt to a changing landscape of financial innovation and disruptive technologies.

    This was said by head of Retail Banking at VP Bank, Sandeep Deobhakta, at a conference held in Hà Nội on Thursday, titled, ‘The Future of Finance in Việt Nam 2017.’

    Deobhakta, who has been holding this position since May 2015, said customers in Việt Nam are very open to new technologies and the nascent retail banking industry in Việt Nam can also adopt these technologies faster than other markets if they put customers first.

    In the future, traditional banks might lose business to companies that employ disruptive innovations if they failed to deliver better, simpler and faster solutions to customers, Deobhakta cautioned.

    VP Bank has been working with Timo, Việt Nam’s first mobile-only bank, giving customers better solutions to manage their money, bills and the ability to top up their mobile cards through the Timo app. At Timo Hangouts, one can forget about a typical bank branch and instead enjoy a coffee as one opens an account and uses bank services.

    Timo has about 4,000 customers in the HCM City and opened a Timo Hangout in Hà Nội last October, looking to attract more than 100,000 users by next year.

    Việt Nam has a huge untapped market for financial innovation, with only 20 per cent of the population having bank accounts and 3 per cent owning credit cards, Foo Boon Ping, managing editor of The Asian Banker, said at the conference.

    “The stable GDP growth of around 6 to 7 per cent, low wages, a large population with a high savings and strong innovative approach are crucial factors that will accelerate the financial and industrial development in the Vietnamese market,” he said.

    “Digital transformation is driven by real business needs to transform to become more cost efficient and to serve your customers as their behavior and preferences change,” he added.

    There are only about 36 fin-tech companies in Việt Nam, with most focusing on providing consumers and merchants with online and digital payment solutions.

  • Laos teams with Microsoft on digital transformation

    Laos teams with Microsoft on digital transformation

    The government of Laos has teamed up with Microsoft to advance the adoption of emerging technologies for sustainable economic development, with focus on projects with social impact.

    At a Government Solution Day event held in collaboration with the Laos Ministry of Post and Telecommunications (MPT) and attended by key government officials and partners, Microsoft showcased how the government can use technology to digitally transform and support economic development.

    Vivek Puthucode, GM for the public sector for Microsoft Asia-Pacific, said the benefits of the digital economy remain out of reach for many in emerging markets despite the enormous untapped opportunities across various industry sectors.

    “As part of Microsoft’s National Empowerment Plan, our approach is to work closely with governments and public sector agencies to support them in overcoming challenges and building more cloud-enabling environments to accelerate their competitiveness, productivity and modernization of operations through trusted technology,” he said.

    This cloud-based, digital transformation roadmap is especially aimed to enable emerging markets, such as Laos, harness the power of technology to embark on a digital transformation journey, aligned with their national priorities.

    “Embracing trusted technology, particularly the power of emerging ICT, will be key to enabling Laos’ growing economy to take a giant leap forward, propelling our nation into a digital enabled community and economy,” said Dr. Thansamay Kommasith, minister of post and telecommunications of Lao PDR.

    “Government Solution Day affirms our vision to drive inclusive growth, a smart government, and transform the way both public and private sectors operate – not only by ensuring accessibility of tools, but also by establishing the right processes and building the digital skills of our citizens,” he added.

    Besides having access to the right tools, people must also know how to use them, according to Michelle Simmons, Microsoft APAC’s GM for new markets in Southeast Asia.

    “Looking ahead, what will be critical for Laos to thrive is digital literacy. We are working with the government to not only deliver educational programs, but also to support the educators themselves with the right resources to impart science, technology, engineering, and mathematics (STEM) skills to local youth, preparing them for jobs of the future,” she said.

    Microsoft had previously inked a memorandum of understanding (MoU) with the Ministry of Education and Sport in Laos to develop a holistic plan to leverage technology for education, covering a range of programs that will support the development of 21st century skills and employability of students.

  • Korea braces for next industrial trends in 2017

    Korea braces for next industrial trends in 2017

    Korean businesses’ quest to step closer to future industries is expected to accelerate in the New Year, regardless of the political scandal, the ongoing investigations into dubious business-political ties and the looming presidential election.

    The year 2016 was an opportunity for general consumers to familiarize themselves with the innovative concepts of technologies. And the year 2017 is likely to see some of these technologies become reality.

    The convergence of the automotive industry with technology will speed up along with a transition to green cars, amid the growing competition in the battery market and the rising price of oil.

    Devices including smartphones and home appliances operated by artificial intelligence will come to the fore, with virtual reality and augmented reality technologies becoming mainstream in the tech world.

    The shifting technologies are also expected to affect the retail market with consumers looking for products that offer experience and value beyond a simple price benefit.

    Go player Lee Se-dol at a press conference at the Four Seasons in Seoul on March 12, 2016

    AI to be next big thing in the tech industry

    Artificial Intelligence, which astonished the world in a match with the top Go player Lee Se-dol, is expected to become the next big thing in the smart device and appliances industry in 2017.

    The nation’s largest tech company Samsung Electronics, which acquired the AI startup Viv Labs in October, seeks to recover from the note 7 debacle with its new AI-based smartphone Galaxy S8, which is set to be unveiled early this year. Viv Labs is the US tech firm set up by Apple’s Siri developers.

    Samsung Electronics’ Vice President Rhee In-jong said in October, “Galaxy S8 will be Samsung’s first platform, which adopts AI-based voice recognition technology,” adding that the technology has reached close to the level of the understanding humans.

    Korean tech firms — both smartphone makers and mobile carriers — are spurring AI development as the technology will ultimately be used to connect and control all home appliances and electronics.

    Samsung is set to unveil more advanced AI-based home appliances, which can be connected via Wi-Fi technology and controlled through smartphones, at the upcoming Consumer Electronics Show in January.

    LG Electronics is also slated to unveil AI-based home appliances, which adopt deep learning technology at the upcoming show. The deep learning technology enables products to provide customized services and functions by learning users’ habits and surroundings.

    The nation’s largest telecom carrier SK Telecom is also upgrading its AI-based speaker NUGU after first launching it in August. This device figures out users’ taste to recommend music, control home appliances and provides customized information such as weather and schedules based on their preferences.

    Market consulting firm IDC predicted that the global AI market would grow 55 percent on average annually from $8 billion in 2016 to $47 billion in 2020.

    Journalists and participants wear the Samsung Gear VR headset at the company‘s flagship Galaxy S7 launch event in Barcelona in February 2016.

    AR, VR to gain bigger presence

    Virtual reality and augmented reality technologies are geared to gain a bigger presence in the tech world in 2017, building upon the landmark developments made in 2016.

    VR is a technology that completely immerses users in computer-generated virtual worlds via a head-mounted display, while AR technology overlays, or augments, digital images onto a person’s view of the world.

    The year 2016 saw the release of next-generation VR headsets such as the HTC Vive, the Oculus Rift and Sony’s Playstation VR, which prompted the emergence of thousands of VR video games and mobile apps.

    The explosive popularity of AR-based mobile game Pokemon Go also highlighted AR’s potential to appeal to the masses on the mobile platform.

    The two cutting-edge technologies are geared to further advance and draw closer to the public in 2017 as the price of VR headsets further drop to boost the VR gaming sector, and as AR technologies are embraced by more industries.

    “After several years of hype, the operative reality behind virtual, augmented and mixed digital worlds is set to manifest more fully in 2017,” IHS Markit said in a recent outlook report.

    The firm expects AR and VR technologies will “advance significantly as Facebook, Google and Microsoft consolidate their existing technologies into more exhaustive strategies.”

    According to tech market intelligence company IDC, worldwide revenues generated by the AR and VR market will jump from just $5.2 billion in 2016 to more than $162 billion in 2020, as the two technologies expand their applications across diverse industries and services.

    IDC predicts that revenues generated by VR systems will surpass that of AR-related revenues until 2017, due to rising consumer uptake of VR-based video games and paid contents.

    After 2017, AR revenues will grow bigger as AR technology finds mass applications across areas such as healthcare delivery, product design and management tasks, it said.

    Just about every major tech company in the world has already entered the race to secure its place in the approaching era of VR and AR technologies. In the lead is Facebook-owned Oculus, Google and Microsoft, with Apple and Samsung Electronics working to catch up.

    Kia’s EV autonomous vehicle Soul

    Auto industry to face unprecedented race

    It was a tough year for the auto industry in Korea with an emissions scandal, strikes, low demand and negative growth.

    With the auto market expected to continue negative growth next year, carmakers will face unprecedented competition in the industry where automotive and technology are converging rapidly.

    South Korea’s largest automaker Hyundai Motor conducted a survey on the most anticipated technology next year. Almost 76,000 of 320,000 voters picked the autonomous driving technology. Although self-driving cars won‘t populate the road next year, most of the major carmakers and tech companies are putting all-out efforts to commercialize the self-driving technology.

    The debut of US electric automaker Tesla Motors and Chinese electric car maker BYD Auto will likely boost the EV market in South Korea, giving customers more choice in this growing segment. Tesla is set to open its flagship store in Korea and BYD officially launched its Korean office in Jeju Island in October.

    Backed by growing popularity, sport utility vehicles will remain as the silver lining for the sluggish auto market, which is expected to decline 1.2 percent on-year.

    Domestic carmakers, especially Hyundai Motor Co and Kia Motors Corp, will face fierce competition in 2017 in the Korean market as imported cars expand its market share. Currently, imported carmakers take up 13 percent of the total market.

    Outside Korea, South Korean automakers will struggle to thrive in mature markets, like the US and EU where analysts expect a zero growth next year, and in China where they saw disappointing sales figures in 2016. China’s auto market is expected to grow 4 or 5 percent in 2017 while other developing markets, like Russia and East Europe, will recover from the 2016 slump.

    China looms over Korean battery makers

    For Korea’s major battery makers — Samsung SDI and LG Chem — concerns over their performance in the Chinese market are likely to persist next year amid the neighboring country’s stricter rules on providing battery certification.

    The two companies have been dealt with a blow after the Chinese government suspended subsidies for electric vehicles using batteries produced by the two firms earlier this year. The two were excluded from the subsidy list as they failed to acquire the battery certification amid tightened regulations in China’s alleged protectionism moves.

    Unless China changes its policies, the Korean battery makers are unlikely to see improvement in their business there, the companies said.

    “While (the company) had anticipated the EV battery certification process will resume in the third quarter, (the Chinese government) did not carry it out. It is difficult to project an accurate timing,” a Samsung SDI official said in the third quarter’s conference call.

    LG Chem shared a similar view.

    “The biggest variable for the company’s sales growth for next year is China. If the status quo continues next year, the automotive battery business growth rate will be around 30 percent. If (the certification issue) is solved, the growth rate will possibly jump up to 60 percent.”

    Amid the higher threshold to the Chinese market, Korean battery makers are seeking to sustain their top position in the global ESS market next year.
    LG Chem topped the global ESS market share with 21 percent this year, standing at No.1 for two years straight, followed by Samsung SDI with 19 percent.

    “Amid the three-party competition of LG Chem, Samsung SDI and BYD Auto in the market, Tesla has risen as the new competitor. As the supply amount of the two Korean companies is projected to surpass 2 gigawatt hours next year, the two are likely to make up half of the market in total,” SNE Research forecasted.

    LG Chem has made aggressive ESS moves with supplying ESS for California’s largest power company SCE and other European companies.

    Experience-focused electronics retailer Electromart at Starfield Hanam

    ‘YOLO’ trend to rule retail in 2017

    In 2016, the retail sector saw consumers shifting their focus to stores and products that offer value and experience, rather than simply low prices.

    Despite the stagnant economy, brands saw consumers reaching for premium and healthy products, packing newly opened malls offering experience-based stores.

    In “Trend Korea 2017,” Seoul National University consumer studies professor Kim Nan-do dubbed this the “YOLO,” or “you only live once,” trend.

    “Consumers who used to think of restraint as a virtue are now enjoying and challenging themselves each moment, and spending money on simple, clear value,” he said.

    The most notable examples of YOLO spending can be found in travel, with consumers facing record-low interest rates choosing to spend money on meaningful experiences rather than saving it away. All retail sectors, meanwhile, have seen consumers choosing to open their wallets and enjoy the “here and now.”

    For example, consumers are buying more decorative products for the home to create better surroundings for themselves. According to the online open market Auction, sales of products like sculptures and music boxes from January to November rose by over 200 percent on-year. Hobby-related products such as classical guitars and model buildings and model airplanes also nearly doubled on-year.

    The Samsung Fashion Research Institute saw “selfness,” or the importance of brands‘ personalities matching those of consumers, to be a major factor moving the fashion industry in 2017.

    Starfield Hanam, a shopping mall featuring stores that allow consumers to experience products as well as buy them, saw nearly 2 million shoppers each month since it opened in September. Starfield Hanam’s popularity during a year when department stores struggled to maintain sales indicated that consumers are visiting and spending money at places that have an element of entertainment, rather than simply shopping options.

    “In an ‘experience economy,’ it will become more important for brands to find new marketing strategies that can satisfy the now-focused experience consumption of the YOLO consumers,” Kim wrote.

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  • Rampant growth of DDoS attacks in 2016

    Rampant growth of DDoS attacks in 2016

    The threat of IoT botnets was realized in 2016 and popularized by Mirai, according to a study by Neustar.

    Mirai and similar types of malware compromise IoT device credentials to enrol them into botnets, which are activated by command and control servers.

    As these code assemblies are published, new developments continue to emerge, such as persistent device enrolment, which enables botnet operators to maintain control of a device even after it is rebooted.

    The study also reported that the frequency of DDoS attack mitigations by the company increased 40% in 2016 compared to the same period of time in 2015, according to a study released by the company.

    “With DDoS attacks predicted to become even more complex and ferocious in 2017, increasingly digital organizations within Asia-Pacific will be exposed to more frequent and severe cyber-attacks,” said Robin Schmitt, general manager for APAC at Neustar.

    Multi-vector attacks, which combine attack vectors to confuse defenders and supplement attack volume, also increased 322% and accounted for 52% of the attacks mitigated by Neustar. UDP, TCP and ICMP comprise the three most popular attack vectors, which were leveraged in more than 50% of attacks.

    The report also showed that DNS-based attacks increased 648% with many attackers leveraging DNSSEC amplification to generate massive volumetric pressure.

  • Digital ads reach across APAC for 18-34 year olds improving

    Digital ads reach across APAC for 18-34 year olds improving

    The success rate of digital advertising campaigns in reaching their intended audiences has lifted significantly within a number of demographic groups across Asia Pacific, in particular for the highly sought-after 18-34 year old segment, as advertisers and their media agencies become more adept with media planning and buying, according to a new benchmarking study of the global digital advertising landscape by Nielsen.

    The Nielsen Digital Ad Ratings Global Benchmarks study, which assessed more than 47,000 digital campaigns across 17 countries in North America, Europe, Latin America and Asia Pacific, found that across Asia Pacific, digital advertising campaigns intended for consumers aged 18 to 34 years had the highest on-target success rate, with 63% of the advertising destined for these consumers hitting the mark, up from 53% in 2015.

    Campaigns aimed at females within the 18- to 34-year-old age group experienced the highest lift in on-target reach, posting a 15-percentage-point improvement to 51%.

    “The Nielsen Digital Ad Ratings benchmark report is shining new light for advertisers on how their digital advertising campaigns are faring in comparison to industry norms,” said Annette Kunst, managing director for Media at Nielsen Singapore.

    “The year-on-year performance improvement shows that an increase in independent measurement can lead to more transparency, and that ultimately improves overall reach and ad spend efficiency,” said Kunst.

    Across platforms, advertising served up via desktop still outperforms mobile advertising when reaching broad audience segments. Desktop advertising intended for people aged 18 to 49 years achieved a 70% on-target success rate, compared to 66% for mobile.

    Conversely, for more niche audiences or narrower segments such as the 18- to 34-year-age group, mobile has a higher success rate – 65% of mobile ads hit their mark, compared to 61% for desktop.

    “Mobile’s success reaching more narrowly defined audiences reinforces that mobile devices provide a highly personalized platform with the potential for more precise connections, and that’s reflected in the rapid increase we’ve seen in mobile advertising, where 45% of the digital advertising campaigns we measure today across Asia Pacific include a mobile component,” said Kunst.

    “With increasing media fragmentation, marketers need to consider all the screens at their disposal when trying to reach their audience,” she said. These benchmarks can help media buyers and sellers better evaluate total digital reach.”

    Looking across categories, Computer & Electronics and Travel marketers had an easier time reaching their desired audience, achieving an on-target success of 68% and 67% respectively. The Automotive and CPG sectors highlight opportunities to optimize reach and maximize return on ad spend, with 47% and 43% of digital ads respectively reaching their intended audience.

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  • DHL introduces fully customized digital Freight platform CILLOX

    DHL introduces fully customized digital Freight platform CILLOX

    DHL Freight introduces CILLOX, a virtual marketplace for enterprises with transportation needs. The fast and seamless solution helps companies to match their full truck load, part truck load and less than truck load offerings with transport providers’ capacities and find the appropriate provider according to their needs. With CILLOX, shippers no longer need to deal with challenges such as lengthy price inquiries and comparisons or unreliable providers – they enjoy end-to-end control of their shipment processes within a single platform. Transport providers profit from guaranteed fast payment with streamlined invoicing and payment processes that improves accuracy.

    “Both companies and carriers benefit from this new business model,” explains Amadou Diallo, CEO, DHL Freight. “With CILLOX, DHL offers a solution to promote the digitalization of the logistics industry and disrupt the traditional road freight business. The launch of the platform is a result of our strategy 2020 and promotes further growth due to its innovative and agile business model.”

    Early user testing during the pilot period was implemented successfully in September and showed high customer satisfaction. As of January 2017, the platform shall be fully operational for all market participants.  Fast and easy processing of transport procedures CILLOX enables companies to find a suitable transport service provider at the touch of a button.

    The platform seeks to address common problems while searching for an appropriate and reliable transport service provider, such as lengthy price inquiries and comparisons, or delays in the Proof of Delivery process, by offering instant access to a large number of DHL pre-qualified and peer-rated providers for fast quotes and easy transport booking. Shippers can pay, manage and track their shipments using a convenient dashboard.

    At the same time, CILLOX offers carriers of all sizes a platform to market their company’s assets and capabilities to expand their customer base and locate suitable loads to further optimize their vehicles’ capacity. CILLOX also facilitates accurate invoicing, payment and electronic Proof of Delivery submission processes, so carriers can profit from guaranteed fast payment. Truck drivers using the CILLOX mobile app receive jobs directly on their smartphone, and automatic status alerts throughout the transportation journey. The extensive range of services provided by CILLOX increases not only DHL’s own, but also its customers’ efficiency and competitiveness.

    Customer experience at the core of CILLOX User needs and requirements are at the core of CILLOX and actual users have been involved from the start of the design and development of the platform. The iterative product development allows the software design to evolve in response to users’ needs and feedback. After the initial launch, further functionalities will be added gradually, including a real-time chat option and mobile document scanning via the mobile app.

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  • Verint acquires OpinionLab to push digital customer engagement

    Verint acquires OpinionLab to push digital customer engagement

    Verint Systems has extended its Customer Engagement Optimization portfolio through its acquisition of OpinionLab, a provider of continuous voice of the customer listening solutions that drive smarter, real-time digital engagement.

    OpinionLab solutions are used by global brands to optimize web and mobile customer experiences and engagement.

    Voice of the Customer (VoC) solutions are becoming a strategic imperative, helping organizations measure and enhance experiences, satisfaction and loyalty.

    As more customer engagements follow a “digital-first” approach for conducting research and performing transactions, as well as solving problems, companies need to measure their customers’ digital experiences and quickly act on those insights to enhance both the customer experience and business performance.

    Through its acquisition of OpinionLab, Verint has extended its Customer Engagement Optimization portfolio to now include the ability to measure and act on digital customer experiences in-the-moment.

    With this addition, Verint has broadened its capabilities for listening, analyzing and acting on the VoC across all channels—digital, voice, text and social.

    “Capturing, analyzing and acting on the voice of the customer are critical for any organization in any industry,” says Elan Moriah, Verint’s president, for customer engagement solutions. “With the OpinionLab combination, we’re taking voice of the customer to a new level by giving organizations a complete solution for improving the customer experience across engagement channels.”

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  • Singapore’s Central Bank to Test Blockchain-Backed Digital Currency

    Singapore’s Central Bank to Test Blockchain-Backed Digital Currency

    The Monetary Authority of Singapore (MAS) will soon test how it could issue digital currency using a v-based interbank payment system.

    The planned proof-of-concept will be supported by blockchain consortium R3CEV, as well as eight banks and an unnamed local stock exchange. The Development Bank of Singapore, HSBC, Bank of America, JPMorgan, Credit Suisse and Bank of Tokyo-Mitsubishi are all said to be participating.

    In a speech on Wednesday, MAS managing director Ravi Menon said the test could come to include other central banks. Further, he credited the bank’s desire to remove cost and friction from traditional bank transactions as the motivation for the effort.

    Menon said:

    “Today, banks have to go through correspondent banks to intermediate these payments. It takes time and adds to cost. This project marks the first step in MAS’s exploration of ways to harness the potential of central bank-issued digital currency.”

    The trial would find banks depositing cash as collateral with MAS, which would then issue a digital currency to participants. The digital currency could then be exchanged among participants in the system and later redeemed for cash.

    The forthcoming trial bears similarities to a previously announced effort from UBS, Deutsche Bank, Banco Santander and startup Clearmatics in August.

    Called Utility Settlement Coin, the project envisioned how a central bank could issue digital currency that could then be redeemed for cash held by a central bank.

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  • Smart footwear market due for rapid growth

    Smart footwear market due for rapid growth

    More than 6 million units of smart footwear will ship in 2021, up from just 300,000 this year, ABI Research predicts. This would represent a CAGR of 82%.

    “The growing elderly population is driving change in the way healthcare can and will be provided, and remote monitoring is one aspect of the m-health industry that can cut costs and improve care,” said ABI Research analyst Stephanie Lawrence said.

    By supporting sensors within shoes or smart socks, home monitoring and remote patient management applications can track a host of valuable parameters with minimal disruption to those being monitored.

    Lawrence further explained that new home and remote patient monitoring smart footwear devices also grant healthcare providers 24×7 access to in-depth, real-time health updates concerning their patients’ posture and gait.

    “Such detailed reporting used to be constricted to a hospital bed; now healthcare providers can paint a fuller picture of their patient’s health outside of the hospital, ultimately allowing them to better monitor ongoing issues and make more accurate diagnoses,” he said.

    ABI Research said that for remote patient monitoring, companies are already turning to smart footwear as a form factor to support diagnostic medical data collection. This includes companies like Plantiga, FeetMe, and Orpyx.

    For instance, diabetic patients are at risk for peripheral neuropathy, or sensory loss, and often cannot detect dangerous pressure levels in their bodies. Orpyx’s SurroSense RX has insoles that use sensors to detect the amount of pressure that a person places on each part of the foot. The device can then alert the user and his/her doctor to any issues.

    “Rising vendors in the smart footwear market need to develop devices that can detect exactly how a person is walking, and provide accurate feedback concerning any issues,” concluded Lawrence.

    “This will ensure that healthcare workers receive detailed health information about their patients, and will allow the smart footwear market to continue to advance and grow significantly.”

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  • Cisco sees doubling in digital banking clients

    Cisco sees doubling in digital banking clients

    James Cronk, global director, Financial Services Industry, at US-based Cisco, said the banking and financial-services sectors were now “transferring their legacy environment into digital transformation to support digital payment”.

    Around 4.5 per cent of Thai banking customers currently use digital payment, a proportion that will rise significantly in the next few years, driven by the development of information-technology infrastructure and security, he said.
    Cisco’s comprehensive economic analysis estimates that digital innovation in retail banking will drive US$405 billion (Bt14.4 trillion) in value globally from 2015 to 2017.

    Last year, financial services as a whole captured just 29 per cent or $117 billion of that opportunity. Moreover, more than 90 per cent of the potential value is driven by key digital-use cases, including sales and services transformation, next-generation workers, video-based advice, mobile payment and connected ads, Cronk said.

    Cisco has six platforms and solutions to support digital transformation in financial services – customer experience, workforce experience, agile IT-fast IT, analytics and insights, cyber security and liability, and risk compliance and management – the global director said.

    Having a road map to digital value in retail banking means banks will be positioned “to enable IT agility and operational effectiveness, create differentiation in their business strategies from those of competitors, and define disruptive new digital-enabled business processes”, he explained.

    Vatsun Thirapatarapong, managing director of Cisco in Thailand and Indochina, said the ratio of digital-banking users in Thailand would increase to 10 per cent of all banking users in the next three years, due to the popularity of using e-payment among generation-Z individuals, the usage of mobile first/cloud first, as well as start-ups developing fintech (financial technology) solutions to support digital payment.
    Moreover, IDC has reported that consumers expect banks to deliver highly personalised hi-tech services coupled with the convenience of anytime, anywhere.

    This group of consumers is growing and accounted for about 4.5 per cent of banking customers in the Asia-Pacific last year, according to the global IT market-intelligence firm, which expects the segment to grow to about 15 per cent by 2020.
    Meanwhile, the Bank of Thailand has reported that there are currently around 12.9 million users of mobile banking in the Kingdom. The value of Thailand’s online retail market is expected to reach $10 billion-$15 billion by 2020, up from less than $2 billion last year, the central bank said.

    The mobile penetration rate reached almost 87 per cent of the population, with smart-phone penetration at 50 per cent, while 50 per cent of all online transactions are done via mobile devices, it added. E-payments are expected to surge from Bt68.2 billion last year to Bt143 billion in 2020.

    Moreover, Thailand is entering in the first stage of the government’s national e-payment policy and, when the e-payment system is fully operational next year, the estimated cost savings for banks and businesses will be around Bt75 billion per year, the Bank of Thailand said. The Thai Bankers’ Association’s Payment System Office has agreed on a new fee structure, which will lower the cost of digital banking.

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  • Malaysia takes step toward digital economy goal

    Malaysia takes step toward digital economy goal

    The 2017 Malaysia Budget announced by Prime Minister Datuk Seri Najib Razak is an incremental step in realizing Malaysia’s vision of a fully connected digital economy, according to IDC.

    Although the specific financial breakdown of the budget initiatives is not yet available, IDC Malaysia said the direct and indirect impact on the Malaysian ICT sector is apparent.

    Data from IDC suggests that total IT spending that includes infrastructure, software and services will grow by 3.3% to be worth $21.16 billion in 2017.

    The research firm noted that it will be interesting to see if the recent budget initiatives will help Malaysia in achieving its vision of a digital economy given that key budget items are directly related to technology, such as improving the speed of fixed line broadband services, tax relief for purchase of select technology products and services, funding for specific MDEC programs focusing on specific initiatives, and launching a digital free zone.

    It likewise mentioned that the Malaysian government has placed a high emphasis on high-speed internet connectivity in previous budgets and continues to make it a priority in the 2017 edition, by mandating fixed line internet services to be increased to a baseline of 20Mbps.

    Currently, the average fixed line internet speed in Malaysia is at 6.8 Mbps, up 36% compared to the previous year. The proportion of internet users with access speeds greater than 10 Mbps and 4 Mbps has increased to 16% and 66% respectively.

    The government has also recognized the importance of further enabling SMEs in increasing macroeconomic indicators. SMEs’ contribution to the overall GDP for Malaysia was estimated to be 36.3% in 2015, whereas it tends to be about 50% and above in high-income nations.

    The $17.7 million allocated to promote SMEs development, as well as the funding for MDEC programs such as the e-commerce ecosystem and Digital Maker Movement, is a very positive step in this direction, IDC said.

    “The e-commerce ecosystem will continue to evolve in the future with the maturity of services, and the consumption patterns of the citizens. Two key areas worthy of future attention are figuring out how to retain more revenues from e-commerce sector within Malaysia, as well as encouraging global e-commerce platforms to increase investment in the country,” said Vijay Sundararaman, IDC Malaysia Country Manager.

    “There is a growing discussion on the creation of e-hubs that can accelerate SMEs output, as well as interconnectivity of these hubs globally to create a worldwide ‘Mega Trading Platform’.”

  • Lane Crawford selects Orange Services’ Cloud to improve digital shopping experience

    Lane Crawford selects Orange Services’ Cloud to improve digital shopping experience

    Orange Business Services has been selected by Lane Crawford, a multi-brand designer label luxury retailer, to provide a cloud-based platform to extend, secure and manage its IT resources in Hong Kong and China. This deployment will enable Lane Crawford to marry offline strengths with digital advantages and offer its customers a more connected retail experience.

    Founded in 1850, Hong Kong-based Lane Crawford is widely recognized as a leading retailer of specialty and luxury goods in Hong Kong and China. Through Orange Business Services’ cloud platform, Lane Crawford will have higher flexibility and scalability to accommodate changes in demand due to seasonal shopping, sales and promotional activities, and ad-hoc use. By adopting a cloud-based platform, Lane Crawford can appropriately align its business with the rapid growth of online shopping in China and meet the needs of new and existing customers.  In addition to meeting Lane Crawford’s needs for its digital transformation, Orange Business Services’ solution delivers an enhanced level of security infrastructure and business continuity plans.

     “Lane Crawford has a long history of delivering high quality products and excellent experiences to its customers,” said Jack Zhang, General Manager, Orange Business Services China.  “We are very pleased to have been selected as a partner in their digital transformation journey and to support them based on our deep understanding of the retail business and Lane Crawford’s existing infrastructure environment.”

    Lane Crawford selected Orange Business Services’ cloud platform for its ability to easily scale to meet rapid changes in consumer demand and its one-stop solution for all the needs it had for connectivity, flexibility and security.  Orange Business Services’ platform is fully compatible with other business critical applications being used by Lane Crawford.

     “Our former infrastructure did not provide adequate flexibility for scalability or future business growth,” said Raymond Liu, Senior Manager, IT Infrastructure, Lane Crawford.  “Orange Business Services’ cloud-based solution gives us cost-efficient performance, enhanced security and protection, and support of on-line transaction applications.  For Lane Crawford, this is a critical step forward in our digital transformation.”

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  • Lippo Group betting on e-money in digital age

    Lippo Group betting on e-money in digital age

    Indonesia’s Lippo Group is turning e-commerce, electronic money and other information technology-related enterprises into a new pillar of its business, closely monitoring spending trends to gain a better foothold in the greater Southeast Asian market.

    The next phase for the banking and real estate conglomerate “will be the fourth industrial revolution,” CEO James Riady told The Nikkei Tuesday on the sidelines of the 18th Nikkei Global Management Forum here.

    Lippo Group was founded as a banking institution by Mochtar Riady, the current CEO’s father and a former head of Bank Central Asia. It branched out into real estate in the 1990s when subsidiary Lippo Karawaci developed a plot outside Jakarta that the group collected as collateral. Lippo Group has since also developed retail and hospital operations, which help boost property value. It now has more than 20 listed subsidiaries and rings up a total of about $7 billion in annual revenue.

    But the fall in resource prices and China’s economic slowdown have dealt a blow to the Indonesian economy, including to its real estate sector. Lippo Karawaci suffered a 23% drop in sales last year to 9.19 trillion rupiah ($702 million), as well as a 79% plunge in net profit to 535.3 billion rupiah.

    Business of the future

    Meanwhile, the proportion of smartphone users in Indonesia has risen from about 20% of the population in 2014 to almost 40% — about 100 million people — in 2015. “We must have inward creative disruption so that we can be transformed into a new area of growth, which is the digital economy,” James Riady said.

    In addition to its communications and media businesses, Lippo Group launched e-commerce site MatahariMall in September 2015. One of the platform’s strengths is that it can use Lippo Group’s retail network throughout Indonesia to move and distribute products — a definite plus in the face of competition from Lazada Group, a subsidiary of Chinese titan Alibaba Group Holding, and Tokopedia, in which Japan’s SoftBank Group has a stake. It was revealed in October that Japanese trading house Mitsui & Co., bullish on MatahariMall’s growth potential, was investing in the site’s operating company.

    Riady considers e-money his new focus. The goal is to get Lippo Group’s 120 million customers on board by allowing them to pay at hundreds of retail locations using the service. He plans to expand the group’s e-money offerings to other Southeast Asian countries, as well as include such services as depositing and transferring e-money. Riady sees a complete transformation in the way banks do business.

    Lippo Group and Singaporean ride-hailing company Grab agreed in July to cooperate on launching a mobile payment platform. The service will roll out in earnest at the end of the year.

    Following trends

    The spread of e-money will allow Lippo Group to closely track spending by its customers at retailers, e-commerce sites and other outlets. Riady hopes to use the service to bolster overseas expansion of the group and improve products and services associated with retail operations.

    Lippo Group is currently operating real estate businesses in Singapore and Hong Kong. But it will target Southeast Asia in the future to win over the region’s young, eager consumers. “What matters is how we can capture the [Association of Southeast Asian Nations] population of 600 million into our e-money accounts and world of services,” Riady said.

    In terms of Lippo Group’s real estate business, Riady expressed his interest not just in property development but in creating entire communities spanning retailers, hospitals and schools. The group has already built hospitals in Myanmar, and the CEO said the company is looking into Vietnam and Laos as well.